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Hello everyone!

 

My name is Chuck and I own an automotive repair/street rod shop here in Oregon. We repair about 75% daily drivers and 25% street rods and customs. I have owned the shop for 9 years now and still have a lot to learn. I found the website when I was looking up information on parts pricing matrix's. I have been reading through some of the forum and seeing that no matter where you rest your head in the world, we all have the same customers! I have been in the service industry for 20 years. I hope to learn more from everyone here and help in anyway I can.

 

CHEERS!

Edited by Chuck
  • 2 weeks later...
Posted

Just setting up the price matrix. I see that you can charge a higher rate for better profit margins on lower cost parts. When I compare those prices to walk in retail cost it seems hard to beat my suppliers over the counter deals. Do you find your own suppliers in your own areas being competetive with your parts prices? Does it matter?

Posted

Just setting up the price matrix. I see that you can charge a higher rate for better profit margins on lower cost parts. When I compare those prices to walk in retail cost it seems hard to beat my suppliers over the counter deals. Do you find your own suppliers in your own areas being competetive with your parts prices? Does it matter?

I wouldn't even worry about their over counter price. Your not a parts store, your selling a package. Show them the value of your warranty and the knowledge that you and your people bring to the table. Many price (when it's legal to do so) a job as a package. So instead of saying "brake pads $54.99 labor $50.00" you would say 104.99 for the brake job. Another method mentioned here was to mark labor up and keep parts at or near the over counter price.

 

Sent from my SCH-I605 using Tapatalk 2

 

 

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  • Have you checked out Joe's Latest Blog?

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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